In pink slip loans, the borrower obtains a short-term loan in exchange of the clear car title that is also known as pink slip. This is very possible as anyone who has a pink slip of a car has the full ownership of that car. The owner of the car is allowed to use their pink slip as collateral to secure loans. This means that the owner of the car has handed the ownership of the car to the lending company. In this case there is no cause for alarm if done with credible and reliable companies. When you have taken out a car title loan, you would still have the car with you to drive around like your car. Take note, you should ensure you regularly pay your dues and meet up with the payment and schedule so the company does not take possession of your car. Taking a pink slip loan is very risky and it is advisable that you make transaction with the company that you can trust.
Pink slip loans are a very good example of a secured loan though the car loan business is slowing down due to the economy credit crunch but pink slip loans are rapidly growing in the lending industry. The way the process works between the borrower and lender in a fairly simple way. We have large amount of money available to customers when you compare it to a standard payday loans because this is a secured form of lending. The collateral that is being offered in this case is the pink slip of your car.
When securing a pink slip loan, it requires very little effort and time and usually involved nothing more than just filling out a few simple forms either online through the internet or over the phone.The amount of the loan you are given depends on the current value of your car.Kelly Blue Book values are used to find the worth of resale. The vehicle that you are using for collateral must hold a certain amount of equity and be paid in full with no other liens or claims. It is expected that the vehicle is fully insured. Pink slip loan repayment is usually due in full 30days but in the case of a borrower needs more time to repay, the lender may work out another payment schedule. When the borrower is not able to pay the balance of the loan at this time, he can rollover the loan and take out a new loan with high interest rate. This can become very costly while putting the consumer in jeopardy of getting in way over their head with loan repayment obligations.
A pink slip loan lender is known for their high interest loans and the loan amount obtained will be based on the value of your vehicle andthe company does not withhold your vehicle. Your day to day life will remain inconvenience free despite taking the loan. The destructive part will only enter your finances if you unable able to repay the loan on time. The interest will begin accruing on the balance which can add a lot more stress to your bank account. A pink slip loan has a loan term of at least 30 days. If you are not sure how you will be able to pay it back, then it may just be a good decision not to use this service.